Monday, March 3, 2008

Trade Adjustment Assistance

Trade Adjustment Assistance – A Closer Look
Trade adjustment assistance (TAA) is a federal program that provides financial assistance to those injured by import competition. Economists argue that trade is beneficial to society. It allows people to specialize in producing things they do relatively well. For example, we do not grow many bananas in the United States. It is easier to buy them from other countries. Trade allows us to use our resources to produce other goods and services. Some people object to trade, however. For example, if you are an American banana farmer, you might argue that your are harmed when American consumers buy bananas from other countries. It is harder for you to sell your bananas if consumers have the option to buy them from, say, Costa Rica. Trade adjustment assistance provides money to people (for example, American banana farmers) who are harmed by the availability of cheap products from foreign countries. The idea is to make American consumers better off (by being able to buy cheap foreign products) without harming American workers too much.
Web Sites with Additional Information about Trade Adjustment Assistance:
• U.S. Labor Department – Trade Adjustment Assistance Fact Sheet
• TAA Centers

No comments:

Post a Comment